Earnings call transcript: Prysmian Q2 2025 sees record EBITDA and stock surge

Prysmian SpA (PRY) reported its financial results for the second quarter of 2025, showcasing strong performance with record EBITDA and a positive market reaction. The company achieved a record Q2 EBITDA of €600 million, contributing to a year-to-date group net income of €426 million. Following the earnings announcement, Prysmian’s stock rose by 3.21%, reaching a price change of 2.2, reflecting investor optimism. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with particularly strong momentum metrics. The company also revised its EBITDA guidance upwards to €2.34 billion for the year.

Key Takeaways

• Record Q2 EBITDA of €600 million with a margin of 14.5%.
• Stock price increased by 3.21% following earnings announcement.
• Upgraded EBITDA guidance to €2.34 billion.
• Strong growth in the data center and transmission sectors.
• Positive impact expected from new copper tariff regulations.

Company Performance

Prysmian demonstrated robust growth in the second quarter of 2025, driven by strong demand in the US and European grid investment markets. The company’s focus on innovation, particularly in data centers and high voltage transmission, has fortified its competitive position. The divestment of three automotive plants aligns with its strategy to concentrate on core segments, enhancing profitability.

Financial Highlights

• Revenue for the first half of 2025: €9.6 billion, with organic growth of 4%.
• Record Q2 EBITDA: €600 million.
• Group net income year-to-date: €426 million.
• Free cash flow over the last 12 months: €1 billion.

Market Reaction

Following the earnings release, Prysmian’s stock experienced a 3.21% increase, closing at a higher level than the previous day. The stock remains within its 52-week high of 72.76 and low of 38.57, indicating strong investor confidence. The positive market sentiment is attributed to the company’s solid financial performance and optimistic guidance.

Outlook & Guidance

Prysmian has upgraded its EBITDA guidance to €2.34 billion and expects free cash flow to reach a midpoint of €1.04 billion. The company anticipates continued positive trends in the third and fourth quarters of 2025, supported by growth in the data center sector and potential benefits from new copper tariffs.

Executive Commentary

CEO Massimo Bataini emphasized the company’s strategic focus on future growth opportunities, stating, "We are setting the foundation for future growth opportunities." He also highlighted the significant contribution of the data center sector, noting, "Data center is adding significant growth." Bataini expressed confidence in meeting the upgraded guidance, saying, "We feel much stronger than twenty-four hours ago about delivering guidance and potential upside."

Risks and Challenges

• Supply chain disruptions could impact production timelines.
• Fluctuations in copper prices may affect cost structures.
• Regulatory changes in key markets could alter competitive dynamics.
• Economic downturns in major markets might dampen demand.
• Technological advancements by competitors could challenge market share.

Q&A

During the earnings call, analysts inquired about the impact of new copper tariffs, to which executives responded positively, citing potential advantages for US-based manufacturers. There was also discussion about the growth trajectory of the data center market, with a focus on the US as a primary driver. Analysts showed interest in Prysmian’s strategies for margin expansion and innovation, which the company addressed with confidence in its ongoing initiatives.

Full transcript - Prysmian SpA (PRY) Q2 2025:

Conference Moderator: Good day, and thank you for standing by. Welcome to the Prismean First Half twenty twenty five Integrated Results Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to your speaker today, Massimo Bataini, CEO. Please go ahead.

Massimo Bataini, CEO, Prismean: Thank you. Good morning and welcome to the first half twenty five results call. I’m very excited to show the results achieved in quarter two twenty five, about the €600,000,000 This sets a new, record for the for the company EBITDA, and the last best quarter was quarter twenty four, the first quarter. After the consolidation of Anchorwire, May, but 06/2005 is definitely an outstanding performance that has beaten and outperformed the past results. It is true there is a some 10,000,000 plus from channel perimeter change, there is also an adverse forex impact in in our quarter two twenty five result versus the previous five forty of quarter three twenty four.

Amazing is the 14.5% in margins, indicating a significant accretion of margin across all business segments, transmission, power grid, but also INC and digital solutions. The organic growth in the first half posted a nice 4%, which is basically coming across all the cement of business. 1,000,000,000 is the free cash flow over the last twelve months, confirming that we are solid in delivering the free cash flow guidance that, by the way, we updated for the full year To be noted, the faster consolidation of channel in our perimeter from June only took less than two months after the signing and also on the CO2 emission and the LG targeting we see later, a significant reduction of CO2 emission in scope one and two versus 2019 of 38%, heading for 40% for the full year scope. Moving to some achievement. I think we never celebrate our achievement.

Here, we want to make sure that we all understand that, not only are we focusing on the results, on the company improvement, on the growth, we are also setting the foundation for the future opportunity for growth. There are in the first, buckets of, comments, achievement, in the different segment of business in BlueOffront, MonaLisa, and P. Color crystal. So an important milestone in confirming our track record in delivering the expansion of capacity, both manufacturing and installation on time and on cost. Several agreements in Power Grids space.

Stargate data center, larger project adjudicated to us in US for a tech sand project in in terms of electrification cables and also digital solution cables. And very important, the consolidation and expansion of connectivity space within Prisma leveraging channel and Warren Brown. But I’m much more proud of what is underneath, a lot of innovations. The first cables, two forty five, for dynamic solution for floating wind offshore platform, a solution for connecting substation to the grid with a medium voltage plug and play cables with connectorized edges, fire resistant range of products, new range of products for The US, and probably the most striking one is the hollow core fiber technology. We partnered with a startup in US.

They developed a solution. We are industrializing it. This will allow to produce and sell cables, fiber optical cables, whose core is empty, is void, so that the light data are transferred at higher speed in air that in glass, allowing data center to be spread over the territory without insisting on the same power grid. So making the data center’s function facilitated. So this innovation are key to confirm our leadership in technological space and supporting the further growth of the company in the coming years.

Let me move now to the individual business. Transmission is the start of this first half. I’d like to comment on the first half result, $250,000,000 EBITDA for the full first half versus 150 last year. So 100,000,000 more in the same period with an important significant growth in EBITDA margin from 14% to 17%. This again remarks the solidity of this business, remarks our confidence in achieving the 18 to 20% target in margins by 2028 as per our Capital Market Day, and with two fifty million per semester, we see the journey through 1,000,000,000 goal by 2028, 1,000,000,000 goal EBITDA within reach, thanks to the solid expansion of the capacity and thanks to the solid execution of the project or better margin that we have in our backlog.

In Power Grid, we are also happy to confirm stability of margins. In fact, margin have gone up 15.6% EBITDA margin in quarter two is higher than what we reported for quarter one twenty five. The growth is substantial, 5%, leveraging the capacity that we unlocked towards the 2024, And, similarly, that the market demand in US in terms of grid enhancement is pretty strong and and solid and driven by solid, secular secular threats. INC, also in INC quarter two, you see the significant jump in EBITDA margin indicating the highly accretive contribution of anchor wire to the performance of the LC business in West and in the tire group. 10.6% of the reported numbers for twenty twenty four quarter two overall year over year is at 14.1% this year with a significant improvement over last year.

The growth was not certainly significant in this quarter two, but, you know, the environment is pretty bumpy, and our focus is on profitability. We didn’t lose market share, actually grown market share thanks to our solid service level coming from Encore Wire. Quarter two last year was particularly stronger. We really want to focus on service and profitability and maintain our leadership in the market and so setting prices in The U. S.

Market. Specialties, we have some organic growth, not bad. The EBITDA margin is not yet at the level of steel. We are still suffering from the softening that we’ve seen in the automotive space. We are close to finally disposing the last two factories that we want to get rid of in the automotive space.

This will happen before the end of quarter three. We also had a negative impact coming from exchange rate, but more importantly coming from a softening in the residential elevate of business in in The US. All the rest is solid, driven by a significant amount of projects across all the verticals, shipyards, defense, fire resistant products, crane and mining and and so on. Digital reflects the benefit of the perimeter change. Two fold, the EBITDA margin surged from 13.3% last year to 16.8%, and this account only for one month out of three when we consolidated a channel that namely was June.

And the 20,000,000 improvement in EBITDA partly come from channel for more than 10,000,000 plus per the June month, and the rest is the organic growth of the company. Must admit, the channel is outperforming our expectation. As we’ve seen markets rebounding in the fiber to the home of cable business in The US, channel is enjoying a significant rebound in volume and also profitability in the connectivity space in US. The combination of the two will make us a stronger provider of fiber to the old solution to The US market with exposure also to data center. ESG KPIs, I rather commented the two on the top right side of the page.

44% is a big share of the total revenue, which is linked, which is associated to sustainable solutions or recycled content or material, products whose carbon footprint is low, product that can enhance our position in terms of supporting customers towards their goals in making them allowing them to achieve the sustainability goals. Remarkable is also the 19.9%, 20% of recycled content in our product. This is driven paradoxically by the tariff. The US market had an excess of waste of copper available. China’s that used to buy this waste didn’t didn’t buy it because of the additional cost.

ANCO, we took a major to the opportunity. ANCO recycled up to 40% of a virgin of waste into the virgin material in the McKinney facility. So ANCO has proven to be taking advantage of the cost benefit of your recycling waste, but also taking advantage of the recyclability part, the DRG part of this topic. Let me hand over to Frank Cesco for more financial insights into the P and L and the free cash flow.

Francesco Cesco, CFO, Prismean: Thank you, Massimo, and good morning to everybody. A very robust set of half one results, as Massimo anticipated, revenues were not far from the 10,000,000,000 level, 9,600,000,000.0 in the first half and the first half organic growth at 4%. Recapping the main messages on growth, certainly a very strong transmission business, where the growth confirmed the strength that we had already seen in the first quarter. A nice improvement in terms of growth in the power grid business, both in Europe and in North America, I would say. A good growth also organic in digital solution with particularly strong North America and also definitely an improvement in terms of sequential improvement at least in the electrification, namely in the IMC, where we posted some good growth compared to the first quarter.

So all in all, 4%. I think even better in terms of EBITDA performance, the Massimo anticipated a record second quarter at six zero five percent margins at constant, at standard metal price at 14.5% and also half year, you see the accretion at standard metal price is very significant from 12.6% to 13.8% plus 1.2%. This is an accretion, which is mainly driven by transmission, which is achieving already in the first half the 17% level in terms of EBITDA margin. But also power grid with margin staying stable, actually even slightly improving at a very good and very high level. And of course, is an accretion, which is also benefiting of the significant changes of perimeter that we benefit all in this first half, anchor wire consolidation, of course, compared to the first half twenty twenty four.

And last but not least, fast and quick closing we had on the channel acquisition, which is starting to contribute and to enhance our profitability quite nicely in the month of June, since the month of June, and which will be a definitely better upside on the digital solution in terms of margin for the second half. Below the adjusted EBITDA line, very few comments, basically neutral adjustments, 2,000,000, benefiting from the gains that we realized on the 8% stake that we have sold so far of YRC. This 8%, by the way, excludes the farther 5.5% that we disposed of in July here. Of course, the cutoff date is June. Have definitely a level of financial charges at €145,000,000 which reflects the new perimeter.

It is substantially in line with our expectation and tax rate in line with the 27% that we were anticipating at the Capital Market Day. All in all, these results in a very strong boost on our group net income. You remember that the first quarter reached 150,000,000 This means the second quarter at €276,000,000 giving the €426,000,000 year to date June. I think we are very well set to achieve the first year of our four year plan for group net income and EPS growth, which is, I’m sure you remember, a metric that we were setting, a very important metric we were setting in New York. You remember that we were setting a range for the full year in between 1519% CAGR.

And I’m very confident that in this first year of the full year, we may even achieve these we may even exceed this range with an EPS growth, which in my opinion will be higher than 20%. Let me now flip to the very solid cash flow delivery that we had in the last twelve months, solid and pretty much stable at the level of 1,000,000,000 compared to Q1 last twelve months and also the full year 2024. This is even more solid if we think that in this $979,000,000, we discounted pretty much a peak in terms of CapEx. You see this €940,000,000 This very high level of CapEx will progressively decrease on a full year base to the level that we have already anticipated to you of approximately $740,000,007 €50,000,000 for the simple reason that this year CapEx are distributed much more evenly, much more linearly than last year. And these will drive our cash flow up towards the new level of guidance that we have decided to upgrade and that Massimo will comment in a while.

Let me maybe remark here that you see that this is a bridge of debt from June to June, and you see the accounting treatment of the hybrid bond. You see the cash inflow close to 1,000,000,009 and €89,000,000 net of some transaction costs. This means that IFRS, as I’m sure you are aware, the hybrid bond is treated as equity. So basically, it’s a reduction to our debt. This is of course a different treatment than the view that, for instance, the rating agencies is having where half 50% of the hybrid bond is treated as debt.

Just to clarify the accounting treatment, which may be not so easy or not so simple for you to understand. Excellent. I think I’m over and I hand it back to Marcinous.

Massimo Bataini, CEO, Prismean: Thank you, Francesco. Let me move to the guidance and let’s draw your attention to the chart on the right hand side of the page. You see how we built it. It’s a starting point. The previous guidance was set at €2,300,000,000 plus minus €50,000,000 We are happy to upgrade the premium perimeter guidance by a number that you can figure out is 40,000,000, and then there is the perimeter effect added on top, unfortunately offset in our assumption by the forex.

As said before, we are happy about the performance of channel. The consolidation of June is extremely accretive to the group, and the trend of EBITDA that we see in the coming months is comforting us on this important position for United for the American perimeter for The US telecom space set and giving us a significant upside. Forex, maybe we’ve been too cautious on this assumption, but we think that was, the right way to, define the new guidance with a possible set between China and forex. The said is, I mean, today, after I’ve been seeing last night, changes in the tariff system of The US, whereby now the 50% that was expected to be applicable to copper, cathode, and rod imports from all the other countries from overseas, and only to to raw material and not to derivatives of to finished products after what happened last night, whereby the tariffs are gonna be applied to rod only and not to cut off, but also to all cables imported from overseas. I must say that I feel much stronger today for what this gadget is expected to deliver for ’24, for ’25, and also I would like to say that I see upside coming from the new tariff system.

Also in light of the possibility, the same approach that has been set for copper will be also applied to aluminum, where for the time being we have only tariff applied to raw material and not to product, finished product imported from overseas. So we we feel much more relieved. We feel that administration is taking the right decision to finally protect and, preserve local jobs and growth our US based manufacturers, and we are one of them. 99.5% of what we sell in US is produced locally, And finally, this will do justice to our investment in The US based territory. We will also we have also upgraded the free cash flow guidance from the 1,000,000,000 mark minus 50 plus 50 to 1,000,000,000 minimum, 1,000,000,075 max range, 1,000,000,040 midpoint.

So moving to the closing remark, I’d like to confirm the positive and outstanding performance delivered by all segments of business in quarter two. Also, INC that posted some negative growth versus quarter two last year. In reality, it has grown by 5.4% in quarter two twenty five over quarter one. So sequentially, there’s been a significant growth and and improvement in EBITDA margin in a in c North America. The margin expansion across all segments, the 1,000,000,000 level of free cash flow confirmed, and the upgraded guidance set an important milestone for us in confirming that the targets that we set for 2028 at the Capital Market Day in New York a few months ago are within reach, and possibly we might see some upside.

So the 2,300,000,000.0 $200,000,000,340,000,000 EBITDA paves the way for the 3,000,000,000 3,100,000,000.0 level of target for 2028. The 1,000,000,000 plus free cash flow of this year is in line with what we want to achieve by 2026 ’28 with 1,600,000.0 free cash flow. EPS in fact actually has outpaced already the target that we set for 2028 and the innovation that you showed that I showed you in this second page of the presentation highlights how important for us is to move towards solutions in order to strengthen our portfolio and our customer relationship and our opportunity for growth. So thank you for this preliminary presentation. I’ll leave the floor to your questions.

Conference Moderator: Thank you. We will now take the first question from the line of Daniela Costa from Goldman Sachs. Please go ahead.

Daniela Costa, Analyst, Goldman Sachs: Hi, good morning. Thank you for taking my question. If it’s possible, I would like to ask three things. But maybe the first one, just expanding on the comments just now regarding the potential from the copper tariffs announced yesterday. Can you talk through like what do you think this is going to do?

How much are imports now? Could this cause sort of the shortage and fears about shortage that we had like in 2021? What would you see has potential on core margins upside from that? I’ll start on that one and then I’ll ask the other.

Massimo Bataini, CEO, Prismean: Thank you, Daniela. So tariff, the original assumption was that tariff would have been applied to cattle and rod imported from overseas. But of course, the local production would have raised prices to the level of the imports. So the the the rising impact would have been that we would need we would have needed to pass $1300000000.01300000000.0 of extra copper costs to the market, creating a potential shock to the local demand. This was our concern.

With a new situation, only, rod imported are gonna solve for this, and as far as we’re concerned, out of the total rod that we need in The US, we only buy less than 10% of this rod from Canada. So we will have a marginal impact in cost in this import of rod in The US. But on the contrary, all the imports of cables, medium voltage, low voltage, high voltage copper cable that are imported from overseas, Korea, India, Mexico and so on, will be penalized with 50% applied not only to the copper content of the cable but to the entire cable value. So this on the one hand, we will not see a significant inflation impact due to the copper cost rise in the market. You must have seen that already the COMEX, which is the metal value of copper in The U.

S, has increased by 50% even ahead of the target application in the last few weeks versus the LME European value, And so thus inflation will not heat the local demand. And on the contrary, the local producers like we are will benefit from cost of cables imported from overseas much higher than today. So this will certainly benefit our guidance, our forecast for the full year, but we will see in the coming weeks how this will come into play.

Daniela Costa, Analyst, Goldman Sachs: Got it. Just quickly on that, how what percentage is imports? Is it around 30% of the market in copper? I know in aluminum is higher, but how much do you assess it is in The

Massimo Bataini, CEO, Prismean: the copper demand in US across the oil industry is 1,600,000 tons. Out of this 1,600,000 tons of copper, 75% prod is produced locally, 25% is imported. But 50% of the cathode is produced locally and 50% of the cathode is imported. So in the previous version of tariff, the cathode was penalized with 50% tariff. Now this is not the case any longer, only and the other importing US, which is only 25% of the world will suffer this 50% impact.

Mhmm. I don’t know if I’ve been able to explain.

Daniela Costa, Analyst, Goldman Sachs: Cable cable imports.

Massimo Bataini, CEO, Prismean: But the cable import is what matters as. No? Because at the end of the day, we don’t rely much on on rod imports, cattle, but not at all. On rod import, we have only 10% of the total needs for our business. So anchor wire, as you mentioned before, will benefit from it because there will be no, an unnecessary, cost to be passed to the market.

And on the contrary, not necessarily in the anchor wire space, but across power grid, high voltage, we will have importance of power grid cables, high voltage cable penalized by the 50% applied to cables. Got

Daniela Costa, Analyst, Goldman Sachs: it. Super helpful. Thank you. My second question was going to be, I think in electrification in The US, you have a sizable share of data centers. We’ve heard many companies having very big double digit growth in data centers.

But when we look at your electrification business altogether, the organic growth was still 1.5%. Can you maybe divide it up between data centers and the rest? Why wasn’t the growth higher given Thank the high data center

Massimo Bataini, CEO, Prismean: you for the question because this helped me allow me to ask to explain the dynamics of the market. Until yesterday, we noticed that the residential market was kind of sluggish, has been very soft over the last twenty four months. But the the nonresidential market due to this potential negative impact of tariffs on on the on the cost of the products has started to soften also. Data center, which are considered nonresidential business, have made the total nonresidential market growing in ’25 over 2024. But if it was only for the nonresidential, excluding data center, we would have seen a slight deterioration in market demand.

So data center is growing. Our exposure for data center is larger. The organic growth that you see in IAC is in the first in quarter two sequentially over quarter one high is 5.4% growth, and this is driven by data center basically. And the softening in non residential business demand that we noticed in quarter one, quarter two, we think will revert into a positive trend given the recent last night new resolution on the copper tariffs. Tariff copper at 50% were certainly settling the entire project cost with unnecessary implemented cost.

This will, in my view, relieve the investors, relieve the the the companies, data center, not data center, infrastructural investment in your asset, and remove some heavy uncertainty that has weighted on The U. S. Market in the last six months.

Daniela Costa, Analyst, Goldman Sachs: Got it, thank you. And then just finally on the backlog in transmission, is sequentially slightly down, do you still expect that we will end up the year with a backlog above, higher than we started?

Massimo Bataini, CEO, Prismean: This is the expectation. There’s not been much order intake in the industry in first half of this year. We expect significant awards of business from National Grid in second half, from ITTO and from, TERNA, from other TSOs in second half. So what we expect to gain in second half will now fully offset by the revenue that we have to deliver in second half. So we do expect to see a slight improvement on the 16,000,000,000 level of backlog, which is by the way not as low as we want it to be, because the the high backlog is nice on the one hand, but prevent us from competing, from being able to compete on no tenders, because our capacity is fully sold out through 2029.

So a level of backlog between 14 and 16,000,000,000 is what we reckon is more healthy to have us to be competitive in terms of flexibility or better work and respond to the new projects to the new project intake.

Xing Huang, Analyst, Barclays: Thank you very much.

Massimo Bataini, CEO, Prismean: Thank you. Welcome Daniel.

Conference Moderator: Thank you. We will now take the next question. From the line of Sean McLoughlin from HSBC. Please go ahead.

Sean McLoughlin, Analyst, HSBC: Thank you and good morning. I had two questions. Firstly, on Grid. So organic growth bounced back from a negative Q1. We’re at the mid single digit organic growth level that ultimately you’ve guided for out to 2028.

I mean, this the new normal? Or could we see an acceleration of that organic growth in H2? And just wanted also to understand regionally what drove that rebound in Q2? That’s the first question. Thanks.

Massimo Bataini, CEO, Prismean: Thank you, Sean. For the first time, it’s worth talking about other regions than The Us. The organic growth has been pretty high in Europe. Europe investment across all utilities has grown massively. We should consider this growth in Europe well above the 5% global growth of the the group.

Across all countries, we’ve seen this revamped needs of intensifying and electrifying final users, which push additional pressure on the existing grids, especially in high voltage grid, but also in power distribution grid. But to be honest, also in The United States, the demand has has been pretty solid in this quarter two over quarter one. It’s also by design that quarter two is stronger because the season, the summer season allow installation, allow Contrasso to work to a different extent than what happened in quarter one. As far as GES is concerned, we expect the second half to benefit from additional capacity expansion. This will come to fruition at the beginning of quarter four.

Then as far as the growth rate for three and four, we had to gauge now. As said before, we are in the middle of a transition from a tariff system that was not supporting a local producer. You we had in this space to pass on to the market significant cost of copper increases, which is not the case any longer. So I’d rather hold my judgment second half until we see how this will be deployed in the market with the new system of tariff will be deployed in the market. But I’m pretty positive about second half organic growth across the regions.

Sean McLoughlin, Analyst, HSBC: Thank you. And I mean staying in grid, I just wanted maybe any comment on broader overhead transmission project risks in The U. S. Following Glenbelt Express project had its government loan guarantee canceled. I mean, there any other projects maybe that you’re involved in that face these kind of risks?

Or how should we think about the transmission market in The U. S?

Massimo Bataini, CEO, Prismean: We had we have run large projects with in energy in the so called overhead line transmission, overhead line project, Gray and Balta, which was benefiting from and is a kind of renewable project because it’s connecting grids of different states, the three states. There was also benefit in this project from incentive that had been removed, but the project has stood up also without incentive. In fact, the project started without incentive benefit, and customer confirmed it will continue with this acquisition of this project, for which we already received a good down payment, advanced payment a couple of years ago when the project was launched. As far as new project concern, I don’t see this happening. On the contrary, the one big beautiful build, there are there are a lot of, let me say, facilitation to spur the demand of power grid cables to strengthen the grid.

It is true that the investment in renewable solar and wind will not benefit from tax tax credit any longer, but equally so that there is a strong push to make the grid more robust, facilitating permitting, and facilitating the local production, and incentivize the local production to support the power grid expansion in The US. So I also see positive market trends arising from this one big beautiful bill that’s been just implemented a few weeks ago.

Lucas Ferrani, Analyst, Jefferies: Thank you, Bastien.

Massimo Bataini, CEO, Prismean: Thank you. Welcome, Sean.

Conference Moderator: Thank you. We will now take the next question from the line of Akash Gupta from JPMorgan. Please go ahead.

Akash Gupta, Analyst, JPMorgan: Yes, hi. Good morning. And I have only one question. My question is on I and C growth in the quarter. You had like minus 3.2% negative in Q2.

And I’m wondering if you can provide some color on what did you see in different regions in Europe versus U. S. And within U. S, what was the growth rate in ENCORE and outside ENCORE? And then when we look ahead into Q3 do you see prospect of double digit growth in some region in I And C as indicated by one of your peers recently thank you

Massimo Bataini, CEO, Prismean: yeah Thank you. One of the driver of this negative growth in quarter two twenty five is unfortunately the difficult tough comparison towards quarter two twenty twenty four, especially in U. S. Quarter two twenty twenty four, including perform across the perimeter of anchor wire, there was a significant demand, which benefited anchor wire back in quarter two last year. But sequentially, as mentioned, the I and C growth in quarter two over quarter one is high, is 55.4% across the board.

It is high in US. It is actually stable in in Europe, the demand of I and C business. We noticed this also from comment from our distributors who sell Sulphur, which sees stabilization of demand in Europe for the time being, and luckily we can compensate some stabilization and see with additional demand data center space also in in Europe. Then what we see in quarter three, four, and quarter four is is probably a new scenario, know, because this scenario discounted or these organic growth over ’24 or discounted a significant uncertainty in US market arising from this huge cost that come from the application of aluminum tariff and rock tariffs. With the new scenario, I mean, a lot of those inflations or the inflation that we expected to see in the market, which could and help partially slow down the non residential business, excluding the center, disappear, will fade away.

So it is probably too early to say what will be the scenario in terms of organic growth in ’3 and quarter three and four, but I feel, as said before, much more positive than I was twenty four hours ago.

Lucas Ferrani, Analyst, Jefferies: Thank you.

Massimo Bataini, CEO, Prismean: All right, guys, Matas.

Conference Moderator: Thank you. We will now take the next question from the line of Uma Samlin from Bank of America. Please go ahead.

Uma Samlin, Analyst, Bank of America: Hi, good morning, everyone. Thank you so much for taking my question. First is a follow-up on INC. So given the current corporate situation, do you think it seems like you’re saying you’ve been getting market share and you’re expecting to see a better H2 going forward. Then should I should we be able to expect both a pickup in growth rate in ANC and also better margins on the back of the corporate tariffs?

Massimo Bataini, CEO, Prismean: We will see finally a a lack of deterioration of the demand in US because the huge cost coming from 50% applied to to comics comics, and the comics cost is pretty high. We’re talking about $10,000 per ton, which has become 15,000 tall thousand $15,000 per ton as a result of the original tarries will will disappear. So we expect the market to rebound in terms of demand. Data center were already even despite its tariff in quarter one and quarter two, a strong driver of growth in US. So I expect to see more organic growth in quarter three, quarter four.

Like I said before, let’s wait and see. It will certainly be another trigger of opportunity if they apply this principle of not penalizing the rod cost, but penalizing the cable imports with from overseas with higher tariff, this this principle has been applied to copper will also be extended to aluminum. So if in both situation of this material, copper and aluminum, we had the tariffs applied to cables as happened over last night for copper, we will have a see a simpler situation and much less cost to pass to the market and all the importers being disadvantaged less of the local producer. This will certainly drive our organic growth massively, but let’s wait and see. I hope this will also happen for the aluminum space.

Uma Samlin, Analyst, Bank of America: Thank you very much. That’s super helpful. My second question is on your new guidance. So you updated that by NOK40 million. Is that more of a reflection of the better I and C and yes, primarily I and C earnings in the first half?

So I guess, what are your growth and margin assumptions for I and C and GREAT for the second half to support this guidance? And do you have any growth acceleration in H2 already baked into this guidance?

Massimo Bataini, CEO, Prismean: I think the $40,000,000 or greater legacy Prisma guidance is based on the growth in transmission, which is coming in pretty well. Ahead of our expectation, is also based on the growth in power grid that we’ve seen in quarter two, sequentially in year over year, and also based on the fact that there are some additional volume opportunity that we think we could be able to capture in quarter three and quarter four. As said before, it doesn’t reflect at all the new change in tariffs dynamics because we didn’t know this until midnight yesterday. That’s why I said that we might see some upside from what we posted today as guidance for the full year.

Uma Samlin, Analyst, Bank of America: That’s very helpful. Thank you very much.

Massimo Bataini, CEO, Prismean: Thank you.

Conference Moderator: Thank you. We will now take the next question from the line of Monica Bosio from Intesa Sanpaolo. Please go ahead.

Monica Bosio, Analyst, Intesa Sanpaolo: Good morning, all, and thanks for taking my questions. I hope you can hear me well. I have four. The first is on the power grid in The USA. I’m just curious, what is now the balance between demand and supply?

Are other players capacity is other players capacity coming on stream? And do you see any effect going forward on the market in terms of higher competition or pricing? That’s the first. The second is on the pricing in the digital solution, how it’s going on this side. And I was wondering if you are still supplying part of The U.

A. Demand from the European plants. The third question is maybe on the data center, which are growing both the rest within industrial and construction. Can you just share with us some number, what is the growth that do you see coming in terms of revenues by year end? And the very, very final, sorry, is for Francesco.

The ForEx impact the impact at the adjusted EBITDA level is very clear. If I can share with us the potential impact, if any, at the free cash flow level? Thank you.

Massimo Bataini, CEO, Prismean: Thank you, Monika. So power grid demand in U. S. Is certainly more balanced with supply than it was one year ago. Some competitors, likewise us, are completing their expansion capacity, but the money is still growing because there is a lot to do in power grid, and the one big bit for bit is pushing utilities to invest more in strengthening the grid and making also the expansion of the data center feasible, achievable, because as far as today is concerned, this data center expansion is somehow constrained by the lack of electricity delivered to the new location.

Price evolution, is early to say, but said before, also in this space, we will benefit from tariff or copper tariff applied to cable imports and not only to raw material. Digital solution demand is super stronger. We are still using European capacity, which was a great opportunity for us to gain market share because activating this flow using the existing capacity in Europe, we could respond to the market surge in demand faster than the local players like Conscope and Kornick. It is true that we will probably see, and as of today, will see 15%, import tariff applied to this flow, but the benefit on the share gain will outpace the possible margin contraction resulted from this 15% tariff application. Data center demand is so strong that is overshadowing the software in the rest of the innovation business.

In terms of growth, we we will we will perform in ’25 twice as much revenues than what we had in ’24. And and this is not just due to the extension of expansion of data center per se. It’s also due to the fact that we are a full fledged player in data center. We sell the full range of cables from digital solution to electrification to power grid and somehow also in transmission. So this is a unique position, secure thanks to our synergistic portfolio, and data center use case is the best use case that proves how crucial for us is to have this synergistic portfolio and so such a growth portfolio.

Francesco?

Massimo Bataini, CEO, Prismean0: Thank you, Ivan.

Monica Bosio, Analyst, Intesa Sanpaolo: Thank you, Bastimo.

Massimo Bataini, CEO, Prismean: Thank you, Monica.

Francesco Cesco, CFO, Prismean: Forex hi, impact Monica, thanks for the question. The Forex impact at the free cash flow level depends on the of course, on the conversion rate of EBITDA into free cash flow. So to simplify, let’s say that if versus the original guidance of the ForEx impact on EBITDA is around €80,000,000 you can assess in between 40,000,045 million euros in terms of impact on the free cash flow. Of course, also in this case, it is taken into account already in the new guidance upgrade of free cash flow that we have given.

Monica Bosio, Analyst, Intesa Sanpaolo: Okay, perfect. Very clear. Thank you very much to all of you.

Massimo Bataini, CEO, Prismean: You’re welcome, Monica.

Conference Moderator: You. We will now take the next question from the line of Xing Huang from Barclays. Please go ahead.

Xing Huang, Analyst, Barclays: Hi, thank you for taking my questions. So maybe I’ll ask one on Digital Solutions. On channel, obviously, it’s already contributing to strong top line and margin. Can you replicate their model to legacy Prisma and Digital Solutions business so we get further upside?

Massimo Bataini, CEO, Prismean: Thank you, Xin. We already have this model of combining connectivity with cables outside The US. In Europe we have a stronger connectivity business which supports the cable business. In APAC also we have the same solution. So channel was the best opportunity to complement our cable business in US with connectivity in what we consider The US, the largest by far and fast growing fiber to the home market in the world.

So there’s no need to replicate it because you already have it, but this will boost the opportunity in U. S.

Xing Huang, Analyst, Barclays: Okay. That’s really good to hear. Does that mean that we can expect 30% EBITDA margin for the segment anytime soon?

Massimo Bataini, CEO, Prismean: You have to take a proper balance between margin and channel are about 35%, margin at Prisma in the legacy Prisma perimeter around twelve, thirteen, 14. 30% would not be the proper weighted average of the two margins, but they will certainly go above 20% mark. That’s coming from 12% is a significant accretion of the global margin of the group.

Xing Huang, Analyst, Barclays: Okay. Good to know. Thanks. And then the other one is a technical one. So I wanna confirm on the hybrid borrowing, this 1,000,000,000, the borrowing costs will go out as dividend instead of financial expenses.

So there’s no change to how we think about financial charges this year. Is that right?

Francesco Cesco, CFO, Prismean: It is absolutely correct. They will be out and treated as dividend, so they will not impact the interest expenses in the profit and loss. They will not impact the free cash flow also, because basically, they will impact the debt, because the coupon will be distributed and treated as a dividend, so it will impact debt, but not free cash flow. The only nuance is that the hybrid interest will impact, on the other end, the EPS are impacting EPS. And by the way, in the estimate that I am giving, of course, I considered these because being treated as preferred dividend, the net earnings are adjusted to account also of hybrid bond interest expenses, but only for EPS calculation, not for net income.

Xing Huang, Analyst, Barclays: Okay, that’s very clear. Thank you very much. Maybe the last one, if you can comment on this. So you mentioned so when people ask about the backlog or tendering activities in transmission, you said obviously H1 market activity was not so satisfying, but H2 we can expect some level of activities from National Grid and IPTO or APTO. Obviously, we all know there is one problematic project right now that one of your peers is having.

And yesterday, they commented on the call that the other possible plan B is to work with on another project. Do you think that compromise your competitiveness in future tenders with APTO? How do you view yourself positioned for APTO tenders versus other market participants? No,

Massimo Bataini, CEO, Prismean: it’s for us kind of not easy to comment about competitors’ projects, but, our position at Itto is pretty stronger, and we don’t see any impact, coming from other competitors in, in our relationship and leadership with the Itto with the Itto business.

Xing Huang, Analyst, Barclays: That’s very clear. Thank you very much.

Massimo Bataini, CEO, Prismean: You’re welcome.

Conference Moderator: Thank you. We will now take the next question from the line of Miguel Borrega from BNP Paribas Xan. Please go ahead.

Massimo Bataini, CEO, Prismean0: Hi, good morning everyone. Thanks for taking my questions. I’ve got a few, first on low voltage. I remember last time we spoke, you returned to making a 15% EBITDA margin in The U. S.

Does that apply to only Yenkor wire or also Prisme in U. S? And then just a measure of comparison, can you share how much you’re making in Europe at the moment? I would imagine a little bit lower than The U. S.

And maybe big picture, how is the competitive landscape in Europe? Does that come from also foreign players? Or is the market more fragmented on a local level? In other words, why doesn’t Europe do the same as in The U. S?

Massimo Bataini, CEO, Prismean: Well, the EBITDA margin in U. S. Is 15%, including Encore and including the legacy Prisoner. So in quarter two, we restored thanks to the solid market demand and our pricing leadership at 50% EBITDA margin across the entire IAC space in US. Europe is around depends on the different country.

The country of 7%, the country at 15% similar as US. I’d rather also talk about LATAM. LATAM is a country where we are close to the level of margin that we have in US. So the country in LATAM where we had 14% EBITDA margin, in average, we had 12% in LATAM. So we we will we will, of course, try to maximize the margin across the border, but you’re right.

The competitive landscape scenario in Europe is different than that US. It will never be close to that US because there is fermentation and because the market is not protected. But still, the differentiation coming from sustainable solution, innovation and so on will help us outpace the others in terms of margin increase in the IC space in Europe and other regions outside of The U. S.

Massimo Bataini, CEO, Prismean0: Thank you. And so if you’re making 10% in electrification and The U. S. Makes 15%, what is dragging margin then?

Massimo Bataini, CEO, Prismean: First of all, you should not confuse electrification and INC. INC, we make in US 15%, and globally, as you see this has been confirmed. But I told you that there are different geographies where the margin is not as high as 15%.

Massimo Bataini, CEO, Prismean0: Clear. Thank you. And then in High Voltage, if I may follow-up here, you mentioned limited order intake year to date. How do you explain that? Is that just timing?

Is are there projects being canceled or not new tenders going on? And how do you see the supply demand balance evolving from here? Are you still keen to keep expanding until 2028?

Massimo Bataini, CEO, Prismean: It is it is a matter of a size of project and length and complexity of tenders, and you should not you should never read the market as a flat market in terms of order intake per month evenly spread across the year. So it happens in other years that you had a lot of intake in year one in first half, sorry, and lower intake in second half and the other way around. This year, there will be a significant level of work in second half for this year as opposed to first half, because this is the phasing of the tenders organized by by customers. We will we haven’t seen any project cancellation whatsoever with there is still a significant imbalance between capacity and demand. And as you see, the foreign players are not gaining shares in this market because there is a significant technological barrier.

And being as the technological leader of the market, we like enjoying creating even further barrier for reporters like Chinese or India’s or other companies. The lack of installation capability is the main reason why this European business had not been awarded to Asiatic players. And among these installation capabilities, we are the most capable. Thanks to aid vessels and our continuous effort in innovating in the space of burial depth, seed depth installation capabilities. I hope I answered the question, Miguel.

Lucas Ferrani, Analyst, Jefferies: Thank you very much.

Massimo Bataini, CEO, Prismean0: Yes, you did. Just wanted to confirm also, you’re still keen to expanding until ’28?

Massimo Bataini, CEO, Prismean: All projects have been launched in ’22. We will continue. And in fact, we have accelerated adding additional expansion in capacity in submarine and land space to cope with the demand that continue that continues to remain strong. I agree.

Massimo Bataini, CEO, Prismean0: Thank you very much.

Lucas Ferrani, Analyst, Jefferies: Thank you.

Conference Moderator: Thank you. We will now take the next question from the line of Alessandro Tortora from Mediobanca. Please go ahead.

Massimo Bataini, CEO, Prismean1: Yes, hi. Good morning to everybody. I have three questions, let’s say. The first one is a follow-up on the Digital Solution profitability. Can you give us an idea of the driver behind the margin expansion we saw even sequential Q1 Q2 versus Q1?

I remember that profitability was around 10% and now we’re talking about 14%, 15, because considering the organic growth, it seems much more related, I don’t know if you say mixed or maybe some savings or pricing. So just understand driver behind this 14%, 15%, because if I understood well with such profitability and also probably with a good demand outlook, you mentioned a combined profitability for Digital Solution closer to 20% including channel? That’s the first question. Thanks.

Massimo Bataini, CEO, Prismean: So there is an expansion of margins at Prisma level thanks to the organic growth in quarter two over quarter one. So sequentially it was pretty high, was almost 10% growth in quarter two, and this is also matching what I said before. We are supporting US demand with the European production, making the organic growth stronger than that to other players, local players. And the second component to this EBITDA margin improvement that comes from the channel acquisition. So we are blending in quarter two, one month of channel at 35% EBITDA margin weighted typical twelve, thirteen, 14% margin of the legacy Prisma.

So this has enhanced the margin of the quarter two. And since from now onwards the channel will be fully embedded in our monthly numbers, you will see the EBITDA margin that was set at 16.8% in quarter two turning towards a 20% EBITDA margin in the coming quarters.

Massimo Bataini, CEO, Prismean1: Okay. Okay. Thanks. And then the second question is, you have a comment on the data center related sales including channel and also the comment on twice the revenues we bought last year. So basically considering, let’s say, whole perimeter, we are talking about, I don’t know, much around 10% of your group sales, even though, let’s say, group sales are inflated by copper.

But let’s say, around 10 of your group sales could be linked, let’s say, to all these data center expansion, that’s a, let’s say, kind of proxy we can use it?

Massimo Bataini, CEO, Prismean: This is a bit too much. It was last year around EUR 600,000,000, so the revenues associated with center. Year, with this pace, will be getting past the 1,000,000,000 level. But you should see this in combination with a non residential space where while last year there was a strong growth, especially in quarter one and quarter two in terms of infrastructure investment for nonresidential business, so airport, the commercial center, and so on. This year, due to the inflation, the car the tariffs, the aluminum covered tariffs, there’s been a softening in the mining nonresidential.

Only when you couple the traditional no residential with data center, the global no residential data center market shows an increase. So data center is adding significant growth. Of this growth is eroded by the softening in the mind in the the typical and the original and no data center no no residential space. But overall

Massimo Bataini, CEO, Prismean1: Mhmm. Mhmm.

Massimo Bataini, CEO, Prismean: I said before, the no reservation included data center is growing by a mid single digit growth.

Massimo Bataini, CEO, Prismean1: Okay. And is it fair to say that, let’s say, all of these data center growth driver for you, we said that is chiefly related to The U. S. Market in the sense that Europe, as you mentioned before, is kind of stabilizing the I and C demand also in Europe, but it is fair to say that so far, this data center driver for you is a cheaply European driver, actually an American driver?

Massimo Bataini, CEO, Prismean: Data center setting a strong driver for our growth in U. S. We have much better position in U. S. Than in other geographies, we are working on it.

We have a significant share in U. S. And a limited share in the other European country or APAC, but we are especially running one off projects, one off activity to create more engagement with the contractors in Europe, which are the real channel to market to data center expansion, conversely from distributors who are the channel to market in US. So we are adjusting our go to market channels in order to be also in Europe a significant player in the data center space.

Massimo Bataini, CEO, Prismean1: Okay. Thanks. And sorry, the last question is just on the EPS growth, let’s say, target for the current year, above the 20%. If you can help me to understand the capital gain, the amount of the capital gain also including the last disposal you made from IFC that could help this bottom line and the expectation for financial charges for the full year? Thanks.

Francesco Cesco, CFO, Prismean: Yes, I start from the second, Alessandro. Expectation of the financial charges for the full year is in between $270,000,000 and €275,000,000 So as I was commenting, the second half, which is slightly declining, slightly decreasing compared to the first half. On YUFC, we sold so far 8% stake, actually not so far, year to date, June 8% stake, moving from 23.5%, 23.3% down to 15%. Then we sold on top another 5% in July. On the part realized by June, the gains were around €30,000,000 say €29,000,000 to be exact.

And on the I’m checking on the second part on which was already done in July, the gains are, let me say, 45,000,000, more or less, not of course not included in our ALF results yet.

Massimo Bataini, CEO, Prismean1: So the remaining 5%, the capital gain was 45%?

Francesco Cesco, CFO, Prismean: Correct. Because it was sold at a much higher price.

Massimo Bataini, CEO, Prismean1: Okay. Okay. So let’s say, we can assume so far with your disposed stake, this €29,000,000 plus €45,000,000

Francesco Cesco, CFO, Prismean: Correct.

Massimo Bataini, CEO, Prismean1: Okay. Gracias.

Francesco Cesco, CFO, Prismean: Thank

Conference Moderator: you. We will now take the next question from the line of Vivek Mehta from Citi. Please go ahead.

Massimo Bataini, CEO, Prismean2: Good morning, everyone. Thank you very much for taking my questions. I have two, if I may. The first is on the transmission pipeline. One of The U.

S. High voltage companies commented on their call that they’ve seen a softening in the European HVDC project pipeline due to affordability concerns for customers. What are you seeing here? How are you seeing the European pipeline develop? Thank you.

Massimo Bataini, CEO, Prismean: We haven’t seen yet this possible softening, but it is so that after a big wave of awards that happened twenty twenty two-twenty twenty four, TSOs will have to realize that capacity is not yet at the level they need to have to have a shorter distance between the word and the start towards execute the start of the execution of project. So I think now the demand is adjusting down, know, adjusted down, is adjusted to the level of capacity and taking stock of the fact that the capacity fully saturated across all players until 2829. So we we’ve confirmed the 15,000,000,000 level of market in the coming years as we said a few months ago.

Massimo Bataini, CEO, Prismean2: That’s very helpful. Thank you. And my final one is just a follow-up. Really appreciate all the color on the copper tariffs, the impact on copper imports. I’m a bit curious around the rod, about the copper rod imports.

You mentioned that about 25% of the market. I’m just curious how much spare capacity do you see within the industry for the existing U. S. Rod mills, I. E, if there’s any reduction in those imports of copper rod can all that shortfall be met by The U.

S. Mills that are existing or indeed any new addition to the market or do you see any risk of shortages? Thank you.

Massimo Bataini, CEO, Prismean: U. S. Players, to rod producers, investing to expand local capacity. Only 25%, as you said, is the gap between the demand and the current capacity. We are also planning to invest in new road capacity in Ankara wire as part of the plan for synergies.

So gradually, this 2525% gap is meant to fade away over time.

Massimo Bataini, CEO, Prismean2: Understood. Thank you.

Massimo Bataini, CEO, Prismean: You’re welcome.

Conference Moderator: Thank you. We will now take the next question from the line of Lucas Ferrani from Jefferies. Please go ahead.

Lucas Ferrani, Analyst, Jefferies: Thank you. I’ll have a few as well. Maybe we do them one at a time. Just the first one is also on copper and also the discussion in the paper on copper scrap. Do you see that also as a win?

Because that can be used that generally comes at good prices and now they’re forced to keep it domestic. So can you talk again about kind of copper recycling and your use of copper scraps and whether that could be also a competitive advantage on price? Thank you.

Massimo Bataini, CEO, Prismean: The copper scrap is sold to the market at a discount over COMEX. So when the COMEX went up from $10,000 to 15,000, there was still a discount over the level of COMEX. So the real benefit is that we have, regardless of the level of COMEX, some, let’s call it, should not disclose it, but anyway, it’s $303,100 dollars saving per tons of copper per use at anchor wire using the scrap. Of course, as we edge towards higher recycled copper in our road facility at McKinney, this $303,100 dollars per ton saving is going to increase. We used to have an average of 15% recycled waste in our copper rod.

Now thanks to the excess of waste available in US market, this level has risen to 30%. So this level of saving the level of saving is is is growing. Yeah that was probably is that clear Lucas?

Lucas Ferrani, Analyst, Jefferies: Yeah no that’s clear. Then the second one was just on the Polo core fiber technology. Can you talk a little bit about the agreement? Essentially, you’re kind of buying VIP and then you can produce, sell the cable. Will that work as a JV?

Can you take us a little bit into how that will work financially and also generally on the size of the market there? My understanding is that it’s only really required in peak to peak application and the total addressable market is probably quite small. Just wanted to have your view on on those two points. Thank you.

Massimo Bataini, CEO, Prismean: Aside from the market, this is a new market. For the time being this technology was not available. This company, RelativeNet, developed a solution and they are the commercial partner to us. They have sold cables, to Microsoft, other players, hyperscale, etcetera, which were not they were not able to produce, apart from what they could do in their lab. So we became the industrial partner to this company.

So we are industrializing their solution, their process for hollow fiber in our factories in Europe. So the combination of these two companies, us and the relative net, will provide the market with a industrial cost competitive solution to sell hollow fiber to hyperscalers, enabling them to distance the data center further out. Then what will be the market size? It is early to say. We have to wait to see what would be the cost of this industrialized solution.

Certainly, there’s a lot of interest from data center because the current latency of the fiber solution provide I mean, sets significant constraints in terms of selecting the the the possible areas where data center can be built can be can could be built. So we will have to figure out this market size in the coming years, but certainly, the profitability of this mark of this solution is pretty high as we speak. Pretty high.

Lucas Ferrani, Analyst, Jefferies: Thank you that’s very helpful and then the last one just on what you’re doing exactly in the specialty business in the automotive segment. I think if I understood correctly you said you were kind of in the last process of divesting some of our automotive exposure. Do you mean kind of winding it down where you’re no longer producing some of those kind of more commoditized automotive cables? Or are you actually selling some of the factory capacity?

Massimo Bataini, CEO, Prismean: Are selling the the asset, the equipment and the customer attached to or the contract attached to this business for three plants out of the seven plants that we had in our perimeter. And these three plants disposal one has happened already in in quarter one the other two will be completed in quarter three.

Lucas Ferrani, Analyst, Jefferies: And what would be roughly your your exposure to to Automotive after that in terms of revenues

Massimo Bataini, CEO, Prismean: or We had before some $606,107 100,000,000 revenue worth of revenue in this space. With this disposal we will reduce this 700 down to $40,450,000,000 only on business that is worth keeping like the one that we have in The U. S.

Lucas Ferrani, Analyst, Jefferies: Okay, perfect. Thanks a lot. Thank you very much.

Conference Moderator: Thank you. We will now take the next question from the line of Chris Leonard from UBS. Please go ahead.

Massimo Bataini, CEO, Prismean3: Yes. Hi, there. Just two quick ones from me, if I may, please. The first is regarding The U. S.

Dual listing. I just wonder if you can give us a timeline about when you might consider repositioning on that given acquisitions now have been embedded in with Encore Wire in the business for more than a year and channel is going well. Equally, The U. S. Market looks like it’s going to be very strong on the back of commentary on the copper tariffs.

I just wondered what your thinking is there on dual listing. Thanks.

Massimo Bataini, CEO, Prismean: Thank you, Chris. For us, this is still a project on hold. We are super focused on the execution of what we have to complete. The transmission growth is solid, but we are still a few steps to achieve to achieve to to target the 1,000,000,000 goal for ’28. We are we are just entering to the channel integration as we speak, and by the way, the or not will continue through year end, and so the real integration will be more, executed in ’25 ’23 than ’25.

So we we also invested much more time in engaging US investors than we did in the past, so try to capture in a way the benefit of US dual listing without performing US dual list. It remains an opportunity at the proper time we will make the relevant decision.

Massimo Bataini, CEO, Prismean3: Okay, super clear. Thank you. And the second question was just on the guidance range and thinking of the upper end. Is there anything you can help us on the sort of moving parts of what might take you to the upper end of that guidance range of EBITDA? Thanks.

Massimo Bataini, CEO, Prismean: As I said before, twenty four hours ago, we didn’t think to modify it and to consider the upper end really within reach. Now let us assess what the dynamics the new dynamics of the market in The US will be, following the announcement of last night, and, we will be more specific in the coming coming months. But as said before, we feel much stronger than twenty four hours ago as far as delivering the guidance and some upside.

Massimo Bataini, CEO, Prismean3: Sure. As a follow-up to that, was there much in the upper end of the current guidance range that was attributed to sort of INC and the electrification business or are you more focused on power grid and transmission?

Massimo Bataini, CEO, Prismean: I think INC, electrification, power grid would be the possible upside over this current guidance, having transmission be fully recognized in this guidance already, and digital solution as well, apart from, the channel piece that we had one month actual, the trajectory and the trends and the the the the outlook for the coming quarters is positive, but we have to wait and see what happens. So there are three possible aero upside channel, power grid and electrification.

Massimo Bataini, CEO, Prismean3: That’s really kind. Thank you for the color. Have a good morning all. Thanks.

Massimo Bataini, CEO, Prismean: Thank you. Welcome Chris.

Conference Moderator: Thank you. There are no further questions at this time. I would like to hand the conference back to Massimo Bataini for closing remarks.

Massimo Bataini, CEO, Prismean: I’d like to thank you for spending this time for us with us. It’s been very useful to hear your question and try to answer your question with giving you the sense of what’s happening in the market. There’s a lot of things that happened at once, but I see very positive about the quarter three and quarter four. Looking forward to talk to you in the coming quarter, and for those of you who are going to have a summer break, please enjoy the break. Thank you very much.

Conference Moderator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

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